Correlation Between King Strong and Kweichow Moutai
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By analyzing existing cross correlation between King Strong New Material and Kweichow Moutai Co, you can compare the effects of market volatilities on King Strong and Kweichow Moutai and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in King Strong with a short position of Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Kweichow Moutai.
Diversification Opportunities for King Strong and Kweichow Moutai
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between King and Kweichow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai and King Strong is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on King Strong New Material are associated (or correlated) with Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of King Strong i.e., King Strong and Kweichow Moutai go up and down completely randomly.
Pair Corralation between King Strong and Kweichow Moutai
Assuming the 90 days trading horizon King Strong New Material is expected to generate 2.06 times more return on investment than Kweichow Moutai. However, King Strong is 2.06 times more volatile than Kweichow Moutai Co. It trades about -0.03 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.14 per unit of risk. If you would invest 1,981 in King Strong New Material on November 4, 2024 and sell it today you would lose (31.00) from holding King Strong New Material or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Kweichow Moutai Co
Performance |
| Timeline |
| King Strong New |
| Kweichow Moutai |
King Strong and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Kweichow Moutai
The main advantage of trading using opposite King Strong and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Kweichow Moutai can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| King Strong vs. Dazhong Transportation Group | King Strong vs. China Sports Industry | King Strong vs. Tonghua Grape Wine | King Strong vs. Time Publishing and |
| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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